The Asian Development Bank (ADB) has withdrawn a $434.25 million loan to a proposed 1000 MW Solar Park in Karbi Anglong Autonomous Council in Assam, following a request from the Union finance ministry. The ministry sought the withdrawal of the loan following a request from the Government of Assam, which faced stiff opposition from the local Karbi, Naga, Kachari and Adivasi communities. These communities had opposed the land diversion to the project, citing displacement of 24 villages in the project area.
The solar power project, proposed as a part of the Assam government’s flagship ‘Mukhya Mantri Soura Shakti Prokolpo’ scheme, sought to divert 2,396.5 hectares or 18,000 bigha land near Khatkhati in Karbi Anglong that shares its borders with Nagaland.
On October 24, 2024, ADB approved a $434.25 million loan for the project valued at $672.68 million or Rs 4,000 crore. Additionally, ADB would have given $ 1 million as technical assistance (TA) from the Clean Energy Fund under the Clean Energy Financing Partnership Facility to assist Assam Power Development Corporation Limited, the state government-owned electricity company. The Government of Assam was supposed to secure 19.29 per cent of the cost of the solar project through private investment, totalling around $129.77 million. The Government of India’s share was 16.15 per cent for the proposed project, under private public partnership.
On May 23, the Union finance ministry wrote to the India Resident Mission of ADB to withdraw the loan application. “In line of the with the request of Government of Assam, it has been decided to withdraw the loan proposal for the ‘Assam Solar Project’ proposal under the Mukhya Mantri Soura Shakti Prokolpo,” wrote the under secretary to the Government of India, Ministry of Finance. Earlier this week, ADB through an information report, stated: “The loan and project agreements were not signed. On 23 May 2025, ADB received a letter from the Ministry of Finance requesting the withdrawal of the loan and TA,” the information report stated. The Assam government is yet to respond on the issue of the ABD loan withdrawal.
The move has been welcomed by local communities opposing the solar power project. Community representatives, led by the Karbi Anglong Solar Power Project Affected People’s Rights Committee (KASPAPPC), were opposing the land diversion citing various irregularities in conducting an assessment by the ADB consultants and government officials. Various regional opposition parties such as All-Party Hills’ Leader Conference (APHLC) along with CPI (Liberation HLC), National Peoples’ Party supported the communities in their fight. “It was a collective fight of the village residents who stood strong. It is a victory of the people against the government, which was willing to bulldoze our constitutional protections. We also ask the Assam government to immediately make a public announcement declaring the complete withdrawal of any project possibility in Karbi Anglong,” said Pranab Doley, KASPAPPC convenor.
Local political leaders such as APHLC general secretary Vikram Hanse and local residents had recently exposed fake no-objection certificates issued by local village chiefs to secure the land diversion, including a fraudulently conducted public consultation. “The loan withdrawal is the first step in cancellation of the entire project. We want the Assam government to completely cancel this project and ensure that tribal land protected under the sixth schedule of Indian constitution remains in the hands of indigenous communities,” added Hanse.